Blackbaud recently released its annual report of trends in online giving and, if you haven't been living under a rock, you probably know that once again the trend was positive. In fact, it must be categorized as a 'really really positive' trend.
An analysis of giving to more than 2,000 of its users leads Blackbaud to report growth of 46% over last year. If you're keeping score, that's after 40%+ growth in '08 and 50%+ growth in '07. Keep looking back and you'll see the same story repeated year after year. Maybe this internet thing is here to stay!
Steve MacLaughlin, Director of Internet Solutions for Blackbaud, has a nice presentation detaling these findings (see below) as well as a presentation on "The Changing Nature of Online Fundraising" (also below) that I found interesting. He incorporates the Blackbaud data with some Pew research that I've mentioned before and some other interesting tidbits and advice. Additional info can be found on his blog at www.blackbaud.com/connections (I stumbled upon the 2nd presentation when looking at the first, and while I haven't dug deeper yet I anticipate more interesting reading when I do. I also learned that Steve is a fellow Indiana University graduate and while we haven't met I would assume that means he's an all-around good guy.)
If I had to point out three take-aways from this information:
1. If I've said it once, I'll say it a million times more - the internet should not be thought of as a 'young donor tool' because people of all ages use the web to surf, shop and support. Look at your own data if you don't believe me;
2. The 2008 Giving USA data shows more than $15 BILLION given online. That's a B folks. It's still a small piece of the pie compared to the rest, but it's not insignificant and it's not all $10 gifts. If you aren't paying attention or investing resources in your online programs, you should be;
3. I don't believe, in the near future, that online gifts will surpass phone or mail for most. It may happen someday, but for now let's say it's 3rd place and gaining steam. Successful organizations will think of them holistically. You don't have a phone program, a mail program, an online program and a face-to-face program. You simply have a program. Many pieces, working together, make up that program - think integration;
3B. See above. Don't put all your eggs in one basket. I've told the story before of the person who told me they were considering an elimination of direct mail because e-mail was cheaper and everyone preferred it. Wrong. Again, repeat after me: holistic. Donors have preferences. The various channels we use to communicate/solicit have advantages and disadvantages. Choose wisely, listen to your donors, measure your results, and allocate your resources accordingly.
Presentations are below. I'd love to hear your thoughts. . . . .
Two unrelated comments:
1. In the 'Changing Nature' slideshow, there's an Apple II on slide 6. I had that exact computer. I'm sure my iPhone is 100x more powerful, but it made me miss the one I had many years ago.
2. My new year's resolution was to blog more frequently and consistently. It's January 6 now and my last post was 15 days ago. Hope you're doing a better job with your resolutions!
Late last week, a representative of one of our most important vendors informed me that he is leaving to pursue a new opportunity. After I recovered from shock and wished him well, I had a chance to reflect on his contribution to our program and the value that he and his organization have brought to mine. I have been fortunate to work with him for several years and believe both of us have learned from the relationship. We've also developed a friendship that extends beyond doing business together.
Some believe the client-vendor relationship is somewhat adversarial - and at times it may be - but generally I feel that most vendors are much more than companies feeding off our programs. They are valued members of the team, and should be treated as such. It's not 'bad business' to develop positive relationships with these folks just because they send us bills for their services.
At the end of this post, you'll find a video that pokes fun at the vendor-client relationship. This video has become quite famous and you've probably seen it at one time or another. Some parts may even ring true, unfortunately, and I'm sure I've been guilty of some of this behavior at least once. But generally, I believe it paints an unfair picture of the vendor-client relationship. In reality, I believe the relationship is positive for both sides and I hope my treatment (and yours) is better than this.
Following are just a few guidelines I recommend when working with vendors:
1. Select vendors who match your organization's culture and values. Look for somebody you can work with frequently, will perform work at the level you expect and will contribute equally to the project. Work WITH them to partner on the projects you work on together. They are not here only to serve you, but rather they should become a valued member of your team. They're providing a service that you either don't want to provide yourself or simply don't have the ability to perform. Welcome them, as they truly are an extension of your team.
2. Once you have selected a vendor, treat them as you would any other member of your team. It's ok to be be open and honest about your successes and failures. It's ok to become friends. It's ok to show them how the sausage is made. The result will be a better relationship and final product that will benefit your organization. And it makes it more fun to work with them as well. Treating them as 'that company that just takes money to provide a service' doesn't benefit either party.
3. As a member of your team, treat the vendor with the same respect as you would anyone else on your payroll. Be fair. Expect the best. Set realistic goals and expectations. One of my mentors spoke often of "making insiders out of outsiders" and this is just as true for vendors as it is donors. As they learn about you and your organization, they will strive to provide the best result possible.
4. Understand that vendors receive payment for providing a service, but that doesn't translate into being a servant for your organization. Getting the best from those with whom you partner means allowing them to provide ideas, feedback and truly PARTNER rather than simply doing as you demand. You don't have to take every suggestion, but respect them enough to listen. Hiring a vendor who learns early on that it's better to always say 'yes' will likely create a less-than-optimal result. You're hiring them for their expertise. Let them provide it.
5. When you have problems (and if you work with anyone long enough you WILL have a problem or two) let them know. Be honest and provide feedback to help them understand what you will expect in the future. Vendors are nothing more than collections of people, and people sometimes make mistakes. You wouldn't hold your employees to a 'one strike and you're out' policy and you shouldn't hold vendors to that standard either. You obviously can't allow repeated mistakes or problems, but don't overreact to the first one even if it's a doozie.
6. Be realistic. Vendors provide services, not miracles.
7. If a vendor performs well, tell others. They'll appreciate it. If they don't, there's no reason to spread the word. That's not professional behavior. If you're asked to provide a direct reference on a former vendor, by all means be fair and honest. But don't seek out ways to damage somebody's reputation. Sometimes things just don't work out, let it be. There's nothing to be gained for unprofessional behavior.
8. Like any member of your team, a vendor must meet your expectations. If the performance level just isn't acceptable and you've given it a fair shake, it's time to find a new vendor. When severing the relationship for performance problems, let the vendor know why you are doing so and how they might improve in the future. This type of feedback will allow them to exit the situation with knowledge that may benefit them (and other clients) in the future. It's also helpful to document these expectations and problems so you can address them with others as you search for a replacement.
9. Treat your vendors well. I know so many people who seem downright mean to their vendors. Then they sit back and expect holiday gifts, birthday cards, trinkets, etc. They want to be treated like royalty because they're paying the bills. Try returning the favor. Remember, this is a mutually beneficial arrangement. Show your appreciation for their efforts just as they show theirs for your patronage.
10. Remember: you get more flies with honey than with vinegar! Having a positive relationship doesn't have to mean becoming somebody's best friend, but it doesn't hurt to maintain goodwill. When you need additional service, speedy turnaround, last-minute changes or something else that involves the vendor going out of their way to make something happen, you'll have a better chance of getting that preferential treatment if you have a great relationship. All that nagging and complaining over the years might come back to haunt you when you need them most.
I hope, for the most part, I follow my own advice. From direct mail shops to telemarketing services to consultants and beyond, I have been fortunate to work with some very good people in the business. I've learned from them and they've learned from me. They provide valuable services and we provide solid business for them. It's a true win-win for everyone.
I treat my consulting clients the same way. As the vendor, I am providing advice in a variety of areas, but I also enjoy developing relationships that last beyond the stated term of the engagement. I'm happy to stay in touch and hear how things are going. I continue to provide advice, and I gain knowledge from them as well. I love hearing of their continued success. I'm fortunate to have a full-time job and this allows me to be pretty picky about which clients I choose to work with. I won't take a client for whom I can't provide value, and I won't take a client who doesn't seem like they'd be enjoyable to work with. I hope the vendors we work with feel the same way.
Back to my friend and soon-to-be-former-vendor-partner. Mark, I wish you the best in your new endeavor. I'm confident you'll be a great addition to your new team. I appreciate the counsel you've provided over the years and look forward to continuing to chat with you in the future. Eventually, I'll even make you a better video poker player! While you'll no longer be one of our vendors, you'll always be a great friend. I fully expect to continue our chats about the business and more. I'm looking forward to meeting your replacement. I'll make some stuff up and feed him/her stories. Then they can feed the rumor mill at your former employer!
Finally, I want to wish everyone who reads the GettingGiving.com blog a wonderful holiday. I hope the final few weeks of 2009 bring you many more donors. If you're a vendor, substitute donors for clients!
The video I referenced at the beginning of this admittedly long post follows. If nothing else, maybe it'll make you laugh a bit and teach you how NOT to work with a vendor.
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When I started the GettingGiving blog, I had several goals in mind. You may have noticed the ‘blog at least once a week’ goal hasn’t been met. Sorry about that! I plan to have a New Year’s resolution to address that issue. Another missed goal, however, has been bothering me as well.
I had hoped to share a few ‘general interest’ items in a wide variety of areas. Generally these would have some professional value to fundraising professionals, but I reserve the right to share an unrelated random item now and again.
This came to mind earlier today when I used the Google Desktop Search application once again to find a long-lost document. If you’re anything like me, you have thousands of documents, files, emails and other items filed electronically in a variety of local and networked locations. Mine have strange names, are filed in the wrong folders and have a variety of other issues that make it difficult to retrieve them at a moment’s notice.
Enter Google Desktop Search.
This free application (available at desktop.google.com) creates a local index of your files and emails and allows you to do a comprehensive search. It’s like having Google attached to your computer, and it’s very very fast. With GDS, the days of guessing what you named (and where you put) a file or email are gone.
Looking for the memo about direct mail expenses you wrote in 2004? Try keywords “direct mail 2004 expenses” and see what happens. Too many documents and emails have those keywords? Try adding the recipient’s name to further narrow the results. Need to find that spreadsheet listing every member of your team and the items they’re bringing to the holiday pitch-in? Enter several of their names as well as the words “corn” and “pie” to see what happens. Voila! There it is!
I’ve used GDS for a long time and every time somebody sees it in action they act surprised and ask how they can get it for themselves. I understand Windows Vista has similar functionality, but if you're stuck on prior versions of Windows,this is one of those killer-apps that nobody seems to know about. Well, now you do.
Anything that helps manage the ‘digital clutter’ in our lives is worth investigating.
By now, the only remnants of Thanksgiving should be the unwanted pounds you've gained and some pumpkin pie in the fridge. A turkey sandwich in today's lunch might be acceptable, but Thankgiving's over and now it's time to get back to work.
While Thanksgiving has passed, I think today would be a great day to observe a different kind of 'Turkey Day' and remove some other leftovers in your professional life.
If you're like most, you have a hard time saying 'no' to a good idea or project. When the boss (or anyone else) asks you to help out, you do. The ultimate volunteer, you're now involved in just about everything.
The end result: You do many things. But not really the RIGHT things.
Even worse, those things you're doing may have little to do with being successful. Take a few moments today to 'toss out the turkeys' and determine where you should focus most of your time and resources.
What new initiatives were launched this year? What new projects did you become involved with? How are they performing? Should they remain, or could some 'disappear' without affecting your organization's success?
How do you spend most of your time? Odds are, you don't know. Conduct a time audit to find out. The time audit may be the best use of your time.
YOU are your most important resource. Do everything in your power to allocate yourself more effectively.
Take a moment to identify the 3-5 most important functions of your position. Define each one clearly and then define what it means to be successful. Are you achieving that level of success? If not, what can you do to dedicate more of yourself and your resources to these functions?
As you find activities that are important, but not on your list of 3-5 top functions, consider delegating those to others in your organization. They'd likely enjoy the responsibility and opportunity, and you get the chance to focus on the most important aspects of your job.
However, as you look at those extra projects, committee meetings, extracurricular activites and anything else that chips away at your time, look for the turkeys. Anything that isn't adding value to you or your organization is a turkey. Don't delegate that work, just stop doing it.
Happy Turkey Day! It's time to throw out the leftovers.
By the way, I know using turkey in a blog in November is trite. Be thankful I didn't use 'gobble gobble' over and over!!
I'm always fascinated by the wide variety of videos and presentations that remind us of how quickly the world is changing around us. This is true on any topic, but the effort some have put into sharing this information as it relates to media is quite substantial. I think we all know this information to be true. . . but sometimes we need a reminder of just how different the world is today. And it's still changing. I'm thankful for that, because that old 'mobile phone in a bag' was quite a bit heavier than my iPhone.
I can't confirm the validity of every statistic or fact in the latest Shift Happens video - "Did You Know 4.0", but there's no doubt the overall theme is accurate. This comes from The Economist and their Media Convergence conference which took place in late October. I'm obviously a bit behind on my posts. Take a look. It'll make you think about where you're headed with your program.
I always put the disclaimer out there that I'm not advocating a giant shift away from traditional annual giving efforts into new media - I'm simply saying that new channels are available to us and they are thriving. We need to be thoughtful about how we use them. Ultimately, it's all about balance and allocating the resources we have appropriately.
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The Getting Giving Blog is a collection of ideas, commentary and occasional rants about the fundraising profession and related topics. Consisting of both original and linked content, Getting Giving strives to provide its audience with information to provoke thought, new ideas and increased effectiveness.
Jeff Lindauer (that's me) has nearly twenty years of experience in the profession and is currently associate vice president for development at a large university foundation. Additionally, he provides counsel to a variety of organizations on a part-time basis while juggling life with two young children.
The views expressed in this blog are solely those of the author, and do not necessarily represent those of his employer, clients, family, friends or anyone else.
If you wish to contact me directly, please feel free to send email to jlindaue@gmail.com and I will likely reply.
